nbn™ Corporate Plan: 2017 - 2020...nbn Corporate Plan 2017 - 2020 Key targets of the plan Remains...
Transcript of nbn™ Corporate Plan: 2017 - 2020...nbn Corporate Plan 2017 - 2020 Key targets of the plan Remains...
© 2016 nbn co ltd
This document is provided for information purposes only. The contents, including any views expressed by nbn are indicative only and subject to change. This document is subject to the information classification set out on each page. If no information classification has been included, this document must be treated as ‘nbn-Confidential: Commercial’ and must not be disclosed other than with the consent of nbn co. The recipient (including third parties) must make and rely on their own inquiries as to the currency, accuracy and completeness of the information contained herein and must not use this document other than with the consent of nbn co. © 2016 nbn co ltd. ‘nbn’, ‘Sky Muster’, ‘bring it on’, and the Aurora device are trade marks of nbn co ltd | ABN 86 136 533 741
nbn™ Corporate Plan: 2017 - 2020
nbn-Confidential: Commercial
© 2016 nbn co ltd © 2016 nbn co ltd
Connect Australia
Close Digital Divide
2020 goals
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8 million premises connected by 2020
Build a united partnership
Build affordable products and services
Build a high performance and reliable network
Build processes and systems
Make nbn a great place to work
Str
ate
gic
imp
era
tive
s
© 2016 nbn co ltd © 2016 nbn co ltd
nbn FY2016 highlights
Today, nearly two thirds of the nation are either in design, construction or already able to order an nbn™ service More than doubled
activated end users – 1.1m
Improved culture
Stronger industry, RSP, end-user relationships
Doubled the number of premises Ready for Service – 2.9m
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More than doubled revenue – $421m
Three product launches: FTTN, Sky Muster™, HFC
© 2016 nbn co ltd © 2016 nbn co ltd
nbn Corporate Plan 2017 - 2020
Key targets of the plan
Remains on track to complete network build by 2020
Remains on track to connect 8 million active end users by 2020
Increased annual revenue for FY2020 to an estimated $5 billion, with ARPU forecast to $52
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Remains on track to complete network build with peak funding of $49 billion
Increased IRR to 3.2 - 3.7 per cent
Greater experience, contracts signed, more accurate data
Decreased top end of peak funding range by $2 billion to $46-54 billion
© 2016 nbn co ltd © 2016 nbn co ltd
Complete the network and connect 8 million homes by 2020
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2.9 5.4
9.1 11.2 11.9
2.6 5.4
9.1
FY16 (A) FY17 FY18 FY19 FY20
RFS - million
Corp Plan 17 Corp Plan 16
1.1 2.3
4.4
6.9 8.1
1.0 2.3
4.4
FY16 (A) FY17 FY18 FY19 FY20
Activations - million
Corp Plan 17 Corp Plan 16
0.4 0.9
1.9
3.7
5.0
0.3 0.8
1.7
FY16 (A) FY17 FY18 FY19 FY20
Revenue - $ billion
Corp Plan 17 Corp Plan 16
© 2016 nbn co ltd © 2016 nbn co ltd
Fully flexible MTM approach
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Forecast range by each technology type
0.0m
1.0m
2.0m
3.0m
4.0m
5.0m
6.0m
7.0m
FTTP FTTN/B/dp HFC
Premises
Fixed Wireless and Satellite
Corp Plan 17 (Premises) 2.0m – 2.5m 5.1m – 6.5m 2.5m – 3.2m 0.9m – 1.1m 11.9m
Corp Plan 16 (Premises) 2.4m 4.5m 4.0m 1.0m
11.9m
Total
Base case
Range
© 2016 nbn co ltd © 2016 nbn co ltd
40% of Australians will be able to access up to 1 Gbps speeds, and nearly 70% will be able to access up to 100 Mbps*
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100% premises at 25Mbps + 86% premises
at 50Mbps +
68% premises at 100Mbps +
45% premises at 500Mbps +
40% premises at 1Gbps
* Wholesale speeds
© 2016 nbn co ltd © 2016 nbn co ltd
Bridging the digital divide
Prioritising underserved areas
70 per cent of current premises RFS are in regional and non-metro Australia
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Progressing underserved areas as priority
0%10%20%30%40%50%60%70%80%90%
100%
Pre FY17 FY17 FY18 FY19 FY20
Underserved RFS
Non-underserved RFS
© 2016 nbn co ltd © 2016 nbn co ltd
Revenue drivers
Data growth, speed tier mix and business segment to drive growth
FY16 FY17 FY18 FY19 FY20 8
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Positive speed tier mix growth to 2020
As usage increases, CVC discount increases. lowering unit cost
Data growth per user expected at 30 per cent CAGR to FY2020
CVC unit price
2016 forecast download per user 2017 forecast download per user
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© 2016 nbn co ltd © 2016 nbn co ltd
Revenue drivers
New business segment
Business end users expected to be 10 per cent of final footprint
Business segment ARPU significantly higher than residential
Ongoing evolution of business product portfolios
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© 2016 nbn co ltd © 2016 nbn co ltd 11
Cost Per Premises
Contracts now signed, greater experience
FTTP Brownfields FTTP Greenfields FTTN HFC Fixed Wireless
$4,400
$2,100 $2,300 $2,300
$4,600
Corporate Plan 2017
© 2016 nbn co ltd © 2016 nbn co ltd
Integrated financials
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$ billions FY16 (A) FY17 FY18 FY19 FY20
Revenue 0.4 0.9 1.9 3.7 5.0
Operating Expenses (1.7) (2.1) (2.3) (2.6) (2.8)
EBITDA before Subscriber Payments (1.3) (1.2) (0.4) 1.1 2.2
EBITDA (1.9) (2.6) (3.2) (2.0) 0.7
Capital Expenditure (4.7) (6.1) (5.9) (3.3) (1.9)
Cash Flow (7.1) (9.2) (10.0) (6.6) (2.5)
Peak funding
Equity funding 20.3 29.5 29.5 29.5 29.5
Debt funding 0.0 0.0 10.0 16.6 19.1
Totals: 20.3 29.5 39.5 46.1 48.6
Annual Forecast Annual Forecast Figures
© 2016 nbn co ltd © 2016 nbn co ltd
Long term funding
Confidence nbn will be fully funded
Public equity at $29.5 billion
Base case peak funding remains at $49 billion
nbn fully funded for FY17
nbn to explore sourcing external debt
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© 2016 nbn co ltd © 2016 nbn co ltd
Risks and challenges
Risks being managed and controlled
Meeting the scale challenge
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Management of partnerships
Competition, revenue and regulatory considerations
© 2016 nbn co ltd
Questions
© 2016 nbn co ltd
This document is provided for information purposes only. The contents, including any views expressed by nbn are indicative only and subject to change. This document is subject to the information classification set out on each page. If no information classification has been included, this document must be treated as ‘nbn-Confidential: Commercial’ and must not be disclosed other than with the consent of nbn co. The recipient (including third parties) must make and rely on their own inquiries as to the currency, accuracy and completeness of the information contained herein and must not use this document other than with the consent of nbn co. © 2016 nbn co ltd. ‘nbn’, ‘Sky Muster’, ‘bring it on’, and the Aurora device are trade marks of nbn co ltd | ABN 86 136 533 741
Disclaimer This presentation contains some information extracted from the audited Consolidated Financial Report of nbn co limited (nbn) for the year ended 30 June 2016. The audited Consolidated Financial Report is expected to be made available in September 2016. The Consolidated Financial Report consists of the Statement of profit or loss and other comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows and the Notes to the financial statements for the nbn Consolidated Group, comprising nbn co limited, nbn tasmania ltd and nbn co spectrum pty ltd. While every effort is made to provide accurate and complete information in this presentation, no representation or warranty is made as to the accuracy or completeness or reliability of that information.
All amounts are in Australian Dollars unless otherwise stated.
This presentation may contain various long-range plans, projections, high level estimates and other forward looking information (Estimates). Those Estimates are based on the best considered professional assessment of present economic and operating conditions, present Australian Government policy, and a number of assumptions regarding future events and actions which, at the date of this presentation, are expected to take place. The Estimates involve known and unknown risks, uncertainties and other factors beyond control that may cause nbn’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the Estimates.
While the Estimates are based on the best considered professional assessment, the management team and officers (as defined in the Corporations Act 2001) of nbn do not give any guarantee or assurance to any third party that the results, performance or achievements expressed or implied by the Estimates will actually occur, and such Estimates should not be relied on or considered to be a representation of what will happen by any third party.
Other than as required according to nbn’s reporting obligations to the Commonwealth, nbn and its officers have no obligation to update the Estimates based on circumstances, developments or events occurring after the date of this presentation.